Individuals can sell their homes even though the property has an outstanding mortgage. When the sale process gets underway, the seller must fill out a mortgage discharge form. After the sale is complete, the lender takes the outstanding loan amount from the proceeds and gives the individual the remainder. A partial discharge also exists. Partial discharges are more common among investors, builders, and real estate entrepreneurs. An individual requests a discharge because they need to change their current financing. There might be a new opportunity on the horizon, or they’re planning to divest portions of their portfolio. Some loans are backed by security, such as property. Several properties on one title back other loans. A partial discharge occurs when an entrepreneur wants to remove one of those properties from the title and loan. Even though the individuals seek to partially discharge a property, they aren’t seeking to pay off the loan. To start the process, a lender requests an application. The loan specialist studies the current loan terms. It’s up to the specialist to find out if the client intends to replace the property with another one. This action constitutes a substitution of security. If your client needs to raise capital, Mortgage Street explores financial products for that need. There are times when a client needs to refinance the loan, which we offer, too.